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Charity Hospital, a not-for-profit, has a maximum capacity of 15,000 discharges per year. Variable patient service costs are $495 per discharge. Variable general and administrative costs are $5 per discharge. Fixed hospital overhead costs are $4,000,000 per year. The current reimbursement rate is $1,000 per discharge.
What is the volume required to breakeven?
Choice: 8,000 discharges Choice: 4,500 discharges Choice: 3,700 discharges Choice: No discharges
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